July 16, 2008

Seven reshuffle as Leckie steps back

Source: Nick Tabakoff, The Australian

THE Seven Network's core media division has unveiled a major management reshuffle that will allow its boss, David Leckie, to step back from some day-to-day duties in the wake of a major health scare less than three months ago.

Mr Warburton will take on the newly created role of the group's chief sales and digital officer, giving him huge power by putting him ultimately in charge of almost every cent of revenue for the business from its TV, print and online operations.

Mr Lewis will become Seven Media's chief operating officer, reporting
to Mr Leckie. He will continue to be responsible for finance, but also
take on management responsibility for Seven's TV stations in the five
mainland state capitals and regional Queensland.

The promotions of the two younger executives will take some operational
workload off Mr Leckie, who has previously dealt more directly with TV
stations around the country.

One source said yesterday the move had consolidated direct reporting
lines to Mr Leckie from more than 10 to just three: Mr Warburton, Mr
Lewis and Seven's head of programming and content, Tim Worner.

Mr Leckie said in a statement: "Today's management appointments -- and
streamlining of management structures and reporting lines -- recognise
the depth of talent here."

However, Seven executives yesterday insisted the move did not form part
of an immediate succession plan for Mr Leckie, who had dubbed himself
"The Comeback Kid".

There has been speculation about Mr Leckie's future since an April
near-death experience where he contracted septicemia from complications
of a finger injury.
But the sources instead said the changes were aimed at extending Mr
Leckie's association to allow him to stay with Seven for another three
to five years.

Seven Network executive chairman Kerry Stokes told The Australian in
the midst of Mr Leckie's health problems that KKR was relying on Mr
Leckie's continued commitment to the group, as part of the joint
venture deal they signed with Seven in 2006.

"They think the world of him," Mr Stokes said in April.

One source said the reshuffle was partly about leaving Mr Leckie with a
"sensible workload" after the health scare. Another said it was
designed to free Mr Leckie to concentrate on TV, particularly on
Seven's "battle with everyone else, multichannelling and the internet",
after the Nine Network's stronger recent showing.

The move to put Mr Warburton in charge of sales across all media is
also seen as significant, placing huge power over Seven's revenues in
the hands of one man. It is aimed at raising more revenue through
cross-platform sales and marketing packages to clients.

Previously, divisional sales heads for each medium were responsible for reporting to advertisers and media buyers.

But one source said: "Rather than having three sales directors speaking to major media buyers about life, there's now one."

Following Mr Warburton's elevation, Seven's Sydney sales director, Kurt
Burnette, will become the TV division's national sales head. He will
report to Mr Warburton.

Meanwhile, Seven Melbourne's CEO Ian Johnson will move on to the less strenuous role of chairman of the station.